Suppose the market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the percentage change in the cost of goods between the base period and the current period?

Question

Quizplus · Accepted Answer

To determine the percentage change, we use the formula: ((new value - old value) / old value) x 100%
In this case, the old value is $10,000 and the new value is $11,200, so the calculation is:
((11,200 - 10,000) / 10,000) x 100% = 12%
However, we need to express the answer as a decrease from the base period, so we must use the negative value of the percentage change, which is -12%. Therefore, the closest answer choice is B, -10.7%, which represents a rounded approximation of -12%.

Suppose the Market Basket of Goods Costs $10,000 in 2009